E*Trade
 

I originally opened an E*Trade account under a promotion with Northwest Airlines. I received the following notice: E*TRADE Securities, Incorporated will reorganize and be renamed E*TRADE Securities LLC ("E*TRADE
Securities"). On September 3, 2002, E*TRADE Clearing LLC ("E*TRADE Clearing") will become our clearing firm and perform
centralized cashiering, bookkeeping, and execution functions for our cash and margin accounts. E*TRADE Clearing also is a
wholly-owned indirect subsidiary of E*TRADE Group, Inc.

Does anyone know what E*Trade is reorganizing and should I consider moving my account?

I don't know why they are doing this but it is unlikely to affect your accounts or FF miles.

It sounds like they created their own clearing agency and are now using them to clear the trades.


Etrade is publicly traded and they may explain the purpose in their SEC filings.

Just a guess on my part.

They may have just acquired a seat on the exchange. That would allow them to execute trades directly, rather than have one of the other brokerages "clear" (actually buy and sell on the exchanges) trades for them.

I suspect eMailman is correct. They may also be setting themselves up to offer clearing services for other brokerages.